So is 2020 the worst year in human history due to the Covid-19 corona pandemic?.
Maybe it is the worst year in human history, we can not really argue against that claim, since there is not a single country that has not been badly affected by this global pandemic.
So we can see from the amounts of emails we get on a daily basis from our smaller and medium sized clients, that this year has been the worst in almost all of our clients lifes from a financial standpoint.
The 2008-2011 financial crisis does not even come close to the level of pain people and small business owners are feeling today.
We have calculated that 50% of our clients that own restaurants, hotels and brick and mortar stores will not re-open again in 2021.
And these numbers are close to the once that are coming out of New york.
So we have a real tsnuami of bankruptcys coming for small business owners in 2021.
We know that many creditors have held off for the past 9 months time and waited to see if we can wait our this pandemic, but now we have information that court cases opened by creditors will start to go true courts in January after the holidays.
What a lot of people do not know is that almost all small business owners are liable to some extend for their business credits or business loans.
Big banks and big credit firm does not care about the little people what so ever.
The big question will be in 2021 where is the jobs goanna come from when 50% of restaurants, hotels and brick and mortar stores will not re-open again.
And what is really frustrating is that many of the jobs that have been lost for a long time are jobs that people between 20-35 years of age are working in.
For many it is the first real job that they have had, so this is very sad.
There is also another problem with these lock-down messures and that is that we are printing money like never before and we are kicking the can down the road, and our children and grandchildren will have to pay the financial price for our lock downs now in 2020.
So what is the solution to all of this?, we have said from day one that from June the first eveything should have been re-opened and everybody would then we responsible for their own saftey going forward.
Since the COVID-19 was a new virus so to speak, even if the Corona virus has been around for a long time, we can understand some safety messures for 45-60 days back in March , but that should have been it!.
Working from home is a luxuary that 30% of the workforce have had the oppertunity to explore.
Many are starting to get feed up with working from home and not having the opportunity to meet co-workers, to go to lunch and even go out with colleges to happy hour now and then.
Our heart breaks for all the small business owners that will not only lose their business/livelihood but also loose their home to their bank/creditors next year 2021 when the courts re-open for cases again.
So when we hear clients say that 2020 has been the worst year ever in their life, it is very difficult to disagree.
It takes years some times decades to build a functioning business, but you can tear it down and lose it all within a years time, this is something we have truly seen during this year 2020.
So buckle down, for a very ruff 2021 , we are almost scared to advise our clients for next year, since we know that there are no easy fixes out there and everything that needs to be done will be very painfull.
Take care out there.